Private equity giants Blackstone and Thoma Bravo have entered preliminary discussions over a potential acquisition of Australian financial software provider Iress, according to a Reuters report citing unnamed sources familiar with the matter.

The talks are still at an early stage, with no certainty that an agreement will be reached. Iress confirmed it has received unsolicited approaches from multiple parties but has not disclosed their identities.

Shares in the ASX-listed firm surged as much as 13.7% on the news, before closing up 9.8% at A$8.52, giving it a market capitalisation of around A$1.6bn ($1.1bn).

Founded in 1993 and headquartered in Melbourne, Iress provides trading, market data, and wealth management software to financial institutions globally. The company has been undergoing a strategic review aimed at improving profitability and focusing on its core software-as-a-service operations.

Blackstone and Thoma Bravo’s potential interest reflects growing private equity appetite for mission-critical financial technology providers with stable recurring revenues. Any deal would add to recent global buyout activity in the fintech sector, as sponsors seek resilient assets in a volatile market.

Iress has appointed Macquarie Capital and UBS as financial advisers.

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